Offer highly-differentiated products with high product margins (In DSC’s case, value and convenience were the differentiators and their product margins are very high. Avoid product categories that can be Amazoned.)

Invest only in zero-sum markets (A customer buying your product means they stop buying your competitor’s products. This is clear for DSC, but often lacking in apparel categories, for instance.)

Choose categories where incumbents sell only through retailers and have no direct relationship with their actual customers